ABSTRACT:The objective of study deals with the Formulation and Optimization of Mouth dissolving tablets of Olanzapine with the application of Factorial Design. Olanzapine is well absorbed following an oral dose undergoes extensive first pass metabolism, resulting in systemic bioavailability of 50-60 % only following oral administration. Prolonged release of the drug and increased bioavailability leads to significant reduction in dose and hence dose related side effects. For the formulation development Camphor and Polacrilin Potassium were selected as variable to formulate MDT of drug. A 32 factorial design was used to optimize the effect of the amounts of Polacrilin Potassium (superdisintegrant), X1 and Camphor(subliming agent), X2 which were independent variables. Direct compression method is used for the tablet Preparation. From the experimental design, drug release rate and profile is obtained. Relation between the dependent and independent variables are drawn out from the Mathematical equations and response surface plots. The result shows that the dissolution rate found to be increased. The results of a 32 full factorial design revealed that the amount of Polacrilin potassium and camphor significantly affect the dependent variables, disintegration time, and percentage friability. So conclusively successful development of Olanzapine MDT which improve the bioavailability of drug by providing an alternative to parenteral and other drug delivery of Olanzapine.